Consolidation Rules, Methods, and Formulas

You can set up global business rules at the application set level. Once the headers, methods and rules are defined, they apply to all related business rules tables within an application set. The business rules library controls the calculation and posting of automatic adjustments when the Consolidation program is executed.

Features

You populate the following two library tables:

Consolidation rules
Consolidation methods

Business rule library entries

You can add a new business rule to the business rule library within the Admin Console by defining the consolidation header, saving, or validating the rule, then adding a new method for the rule if necessary. If you add a new method, save or validate the rule again, define parameters for the rule, then save or validate the rule one last time. Once defined, the rule can be used in any application in the application set.

Note Note

Validating the rule is not supported in the Microsoft version.

End of the note.

Consolidation rules

This simple table defines the list of business rules that can be used in the application set. If desired, each business rule can be restricted to specific consolidation methods.

You define a name, description, and consolidation method as noted in the following table. The consolidation method as defined in Rule Type limits the use of the rule to the specified type of consolidation method.

Field Name	Description
Rule ID	The identifier for this rule. Example `RULE01` End of the example.
Rule description	A description for this rule. Example Equity, 100% Minority Part, Dividends, Stock Holder Equities, Intercompany elimination End of the example.
Rule type	The consolidation method: Proportional Uses Proportional method elimination rules Equity Uses Equity method elimination rules ALL (or blank)

Consolidation methods

The Consolidation Method table describes the accounting methods available for use in the consolidation for each entity.

Field Name	Description
Method code	The unique method code. The value must be an integer between 1 and 98 `99` – a reserved value and means any method, consequently it cannot be assigned to any entity
Method name	The description for this method. Example Leaving, Equity, Proportional, Global, Holding. End of the example.
Method type	The Entity method type. Example New, Holding, Global, Proportional, Equity, Leaving (End of Year), Leaving (During the Year) End of the example.
Share range	The percentage range for the given method. Example The percentage share range for Equity method may be `0.2<=, <0.5`. End of the example. The consolidation method and percentage of consolidation (PCON) can be automatically defined according to the share range and consolidation factor fields.
Consolidation factor	This field holds the value that needs to be copied to the consolidation percent (PCON). The consolidation method and percentage of consolidation (PCON) can be automatically defined according to the share range and consolidation factor fields.

Consolidation rules formulas

The Consolidation Rules Formula table controls how the amounts or the destination accounts should be calculated. The behavior is controlled by the rule being used, the consolidation method assigned to the current entity, and its INTERCOMPANY partner, if applicable.

Field Name	Description
Rule ID	The name of the rule. The dropdown list contains the rules defined in the Consolidation Rules table.
Entity Method	A valid entity method, as defined in the Consolidation Methods table, or a list of entity methods separated by commas to which the rule applies.
IntCo Method	A valid entity method, as defined in the Consolidation Method table, a list of entity methods separated by commas, or 99 for all methods. For the Intercompany dimension, this is the entity values to which the rule applies.
All Formula	An expression that represents the percentage (or formula) to apply to the Destination All account property from the Automatic Adjustment Detail table. The value can be an arithmetic expression combining any defined percentage in the account dimension of the ownership application. All percentages where the property `IS_INPUT` is equal to Y can be used. Note the following guidelines: The members must be enclosed in square brackets. Example `[POWN], [PCTRL], [POWN]` End of the example. Add the prefix P to the percentage to use the Prior value. Example `[PPOWN], [PPVOTE]` End of the example. Add the prefix `I_` to the percentage to add the Intercompany value. Example `[I_POWN]` End of the example. The syntax of the prior value can be combined with the syntax of the `INTCO` value. Example `[I_PPOWN]` End of the example. Note The calculation of `POWN` by both direct share method and group share method is supported. We also support the calculation of `PCTRL` (calculation of ultimate control %) in the business rule tables. There are two options for obtaining results: system calculations and manual updates. There is also an option to change from system to manual while calculating. This gives you the means to manage security by protecting system calculations that cannot be overwritten by manual updates. To support this, we also provide the `O_ACCT` dimension in ApShell by adding a set of members that store only system calculations. The members are `POWN_SYS`, `PCTRL_SYS`, and `METHOD_SYS`. End of the note.
Group formula	An expression that represents the percentage (or formula) to apply to the Destination Group account from the Automatic Adjustment Detail table. The value can be an arithmetic expression combining any defined percentage as defined by the Account dimension of the Ownership application. All percentages where the property `IS_INPUT` is equal to Y can be used. The percentage must be enclosed in square brackets. See the All formula field above for further details.
Minority formula	An expression that represents the percentage (or formula) to apply to the Destination Minority account from the Automatic Adjustment Detail table. An arithmetic expression combining any defined percentage as defined by the Account dimension of the Ownership application. All percentages where the property `IS_INPUT` is equal to Y can be used. The percentage must be enclosed in square brackets. See the All formula field above for further details.
Remark	Text description for this rule.